First-time buyers shouldn’t let elevated median home sales prices—now topping over $400,000 nationwide—scare them off. Pockets of the country still offer plenty of homes for sale at a fraction of that cost.
Surging home prices and mortgage rates in recent years have prompted many aspiring first-time buyers to retreat from the housing market. National Association of REALTORS® research shows their share of home purchases dropped to an all-time low last year, accounting for just 21% of sales.
“Truly affordable markets have become harder to find, especially for younger households,” acknowledges Joel Berner, senior economist at realtor.com®.
But the message to first-time buyers heading into 2026: It’s not impossible.
In fact, economists are hopeful that first-time home buyers will stage a notable return this year, aided by lower mortgage rates and stronger negotiating power that could help offset higher homeownership costs. Another possible critical factor to the first-time buyers’ journey: Location.
“Where you buy can not only influence how soon you can take that step—it can shape the tradeoffs that home buying requires,” says Danielle Hale, realtor.com®’s chief economist.
Read more: Could More First-time Buyers Make the Math Work in 2026?
Finding the First-time Home Buyer Market Gems
Without home equity to leverage from a previous sale, first-time buyers often have to dig deeper into their savings to enter the market. The median down payment for a first-time home buyer reached 10% in 2025—the highest level in more than three decades, according to NAR research.
Markets that offer the most promise may be those with median listing prices below both the national and metro median levels. In some cases, that could mean homes priced under $200,000—an increasingly rare but still attainable threshold for new homeowners.
Those that rise to the top in realtor.com®’s 2026 ranking of best places for first-time buyers combine home price forecasts that are “comparatively attainable … with strong local amenities and a supportive economic backdrop,” Hale says. “For first-time buyers, that combination can mean a more manageable path to homeownership—all without giving up the neighborhood features that make a place feel like home.”
Urban and Suburban Pockets
First-time buyers don’t necessarily need to head to the suburbs these days to find affordability. Six of the 10 places that landed on in realtor.com’s 2026 list are the principal city of their metro. The list was derived from an analysis that factored in both median list prices and median earnings of 25- to 34-year-olds. Realtor.com® identified markets where housing costs fall under 30% of the household’s monthly income, a metric most financial experts use in gauging housing affordability.
The following are the metros topping realtor.com®’s list for best markets for first-time buyers in 2026:
1. Rochester, N.Y.
- Median listing price: $139,900
- 25-to-34-year-old median income: $48,617
- Share of income spent on mortgage payment: 19.1%
2. Harrisburg, Pa.
- Median listing price: $151,999
- 25-to-34-year-old median income: $51,285
- Share of income spent on mortgage payment: 19.7%
3. Granite City, Ill.
- Median listing price: $119,000
- 25-to-34-year-old median income: $62,621
- Share of income spent on mortgage payment: 12.6%
4. Birmingham, Ala.
- Median listing price: $148,950
- 25-to-34-year-old median income: $47,647
- Share of income spent on mortgage payment: 20.8%
5. North Little Rock, Ark.
- Median listing price: $170,000
- 25-to-34-year-old median income: $53,258
- Share of income spent on mortgage payment: 21.2%
6. Syracuse, N.Y.
- Median listing price: $169,900
- 25-to-34-year-old median income: $51,436
- Share of income spent on mortgage payment: 22%
7. Baltimore
- Median listing price: $223,900
- 25-to-34-year-old median income: $62,982
- Share of income spent on mortgage payment: 23.6%
8. St. Louis Park, Minn.
- Median listing price: $375,000
- 25-to-34-year-old median income: $98,036
- Share of income spent on mortgage payment: 25.4%
9. Pittsburgh
- Median listing price: $249,000
- 25-to-34-year-old median income: $70,226
- Share of income spent on mortgage payment: 23.6%
10. Garfield Heights, Ohio
- Median listing price: $140,000
- 25-to-34-year-old median income: $54,007
- Share of income spent on mortgage payment: 17.2%
Also see: NAR’s 10 Home Buying Hot Spots to Watch in 2026
